Stock Market Guide for Beginners

Stock recommendations, also called ‘trading tips’ or ‘trading calls’, are service tips offered by several Stock Brokers in India to their customers. Tips are generally given in the form of information, suggestions, advice, updates, etc., regularly, in order to suggest and update their customers on best stocks to buy and other profitable investment opportunities. These tips include the following:

current price of the stock

target price of the stock

and the period within which it is expected to reach the target price.

The key to success in the stock market is to find and buy “best stocks”, though it requires lots of experience and expert level research. It is not necessary that every other Broker should provide you stock recommendations. Only brokers who have dedicated and expert research teams provide share market tips. Here are some tips that may benefit you:

Enquire about the quality of stock recommendations

There is no harm in talking to your friends, family, or people who are using brokers to know about the history and quality of stock recommendations. Go for stocks that have the potential to deliver returns. It is always recommended to go for a broker who can offer you stock recommendations with guaranteed returns.

Better to start small

Once you have opened your trading account with Tradeplus, start small by investing a small amount of money within the stock tips. Once you start gaining confidence in the quality of tips, start investing big. While doing multiple recommendations, it is always better to diversify by investing in small amounts. This way, you will easily minimize the risk of losses.

Diversify your portfolio

The most popular way to manage risk is to diversify your exposure. Imagine yourself owning stocks in five different companies, each of which, according to you, continually grows profits. But then, circumstances change. Towards the end of the year, you may have two companies A & B that performed so well that their stocks went up 25% each. The stock of the other two companies C & D in a different industry went up to 10% each, while the assets of the fifth company E, were dissolved to pay off a massive debt.

Diversification helps you to recover from the loss of your total investment- 20% of your portfolio, by profits of 10% through the two best companies (25% x 40%) and 4% through the remaining two companies (10% x 40%). Even if your overall portfolio value has dropped by 6% (20% loss minus 14% gain), it is considered a better option than having your all investments solely in company E.

Hope these tips help you to venture into Stock and Equity markets. We at Tradeplus, provide zero brokerage for equity cash delivery and flexible lowest plans in the industry for other segments. This translates to assured savings for you when you trade with us.Tradeplus has been one of the most reliable Financial Services Intermediaries since 1983 and we are one of the pioneers of Online Trading in India with the patronage of over 40000 Clients.